This bill amends the Wyoming worker's compensation law to allow for the consideration of specified investment earnings when determining rates under the worker's compensation program. Specifically, it replaces the term "contingency margin" with "provision for adverse deviation" to better reflect the uncertainty in estimating unpaid losses and loss adjustment expenses. Additionally, it clarifies that the workers' compensation account must have sufficient funds to cover all unpaid losses and includes a new provision that investment earnings from the actuarially reasonable provision for adverse deviation will be considered revenue for the worker's compensation account. The annual investment earnings will be determined by the department, ranging from 0% to 5% of the total market value of the provision for adverse deviation.

The bill also includes a provision for an effective date of July 1, 2024. This legislative change aims to enhance the financial stability of the worker's compensation program by allowing for a more accurate assessment of available funds and potential revenue from investments, thereby ensuring that the program can adequately meet its obligations.

Statutes affected:
24LSO-0198 v0.4: 27-14-201